Accell reports slight uptick in FY ’10 sales
Accell Group (ACCG.AS) said its yearly sales rose 1 percent, with its fitness segment revenue accounting for around 5 percent of its overall sales.
For 2010, group sales, which includes Accell Fitness, Tunturi and Bremshey, were EUR 577.2 million (USD $794.9 million) versus EUR 572.6 million (USD $788.6 million) in 2009.
The company said poor weather conditions for bike sales — its core market — in the fourth quarter and adverse exchange rate effects led to a drop in the operating result in the second half of 2010, compared with the same period of 2009.
Tax benefits and lower interest charges, though, resulted in a rise in net profit of 11 percent to EUR 36.4 million (USD $50.1 million) in 2010, compared with EUR 32.7 million (USD $45.0 million) in 2009.
Sales in the fitness segment dropped 4 percent to EUR 28.5 million (USD $39.2 million) versus EUR 29.7 million (USD $40.9 million) in 2009.
In the first half year, Accell Group said its fitness division saw a strong rise in revenue, particularly as a result of sales to new distributors, some of which was due to the replacement of existing distributors and some of which was in new countries.
But the second half of the year, it reported a drop in sales compared with the same period of 2009, largely from a drop in demand from major customers in North America.
Additionally, the closure of its operations in Germany and England and the replacement of these with third-party distributors decreased sales for Accell Group. The downsizing of the distribution operations and adaptation of the organization contributed to the reduced cost base in the fitness division in 2010, which led to the strong improvement — by EUR 2 million (USD $2.7 million) — of the segment result. Working capital also continued to decrease, it added.
(Conversion of Euros into U.S. dollars is for information only, is not necessarily relative to earnings, and is based on the currency rate as of Feb. 25.)
Garmin’s Q4 earnings drop 52 percent
Despite a 15 percent increase in outdoor/fitness segment sales, Garmin (Nasdaq: GRMN) said its fourth-quarter earnings fell 52 percent as Smartphones continued to eat into its personal navigator market share.
The company also issued a weaker-than-expected forecast, as it predicted that sales of global positioning system devices will continue to tumble. Revenue from its dashboard navigators fell 31 percent during the most recent quarter.
The company earned $132.9 million, or $0.68 per share, versus earnings of $278.4 million, or $1.38 per share, in the same period last year.
Revenue fell 21 percent to $837.7 million from $1.06 billion.
Garmin had partnered with hardware maker Asustek Computer to make Garmin-branded phones that had GPS radios and ran Google’s Android software, but wasn’t able to compete. In November, Garmin said that it was “winding down” its Smartphone business.
As its personal navigators have become less relevant, Garmin has shifted its attention toward other, smaller markets. It makes fitness and outdoor gadgets including watches for runners that record distance and speed, and also sells GPS hardware to plane and boat makers.
During the most recent quarter, revenue in its outdoor/fitness segment increased 15 percent to $171 million, aviation revenue added 10 percent to $71 million and its marine business grew 9 percent to $37 million.
But these segments combined generated only $279 million in revenue — half of the $559 million generated from the personal navigation business.
The company said it expects sales of personal navigators to continue falling in 2011, pushing overall revenue lower. The company expects to earn between $2.25 and $2.50 per share this year on revenue between $2.4 billion and $2.5 billion.
For the full year, Garmin’s net income was $585 million, or $2.95 per share, compared with $704 million, or $3.50 per share, in 2009. Annual revenue fell 9 percent to $2.69 billion.
Play It Again Sports parent doubles Q4 profit
Winmark’s (Nasdaq: WINA) fourth-quarter profit more than doubled on continued growth from store sales and openings in its franchise business.
The company, which includes Play It Again Sports, said its net income was $3.1 million, or $0.60 per share diluted, compared to net income of $1.4 million, or $0.28 per share diluted, for the same period last year.
Revenue for the quarter ended Dec. 25 was $10.47 million, up 11.6 percent from $9.38 million during the same period a year earlier.
For full-year 2010, net income was $10.3 million, or $1.98 per share diluted, compared to $5.8 million, or $1.10 per share diluted, in 2009.
Revenues for the year were $41.2 million, up from $37.2 million in 2009.
Additionally, the company’s board OK’d a 500,000 share repurchase in addition to the approximately 40,000 shares remaining under an existing board authorization. The new authorization is equal to approximately 10 percent of Winmark’s current outstanding shares, it said.
Sears’ Q4 profit drops 13 percent
Sears Holdings’ (Nasdaq: SHLD) fourth-quarter net income fell 13 percent, despite continued strengthening at its Kmart stores.
For the quarter ended Jan. 29, it earned $374 million, or $3.43 per share, versus $430 million, or $3.74 per share, a year earlier. Adjusted earnings were $3.67 per share.
Revenue dipped 1 percent to $13.14 billion mostly because of fewer stores and lower revenue at stores open at least a year.
In the fourth quarter, revenue at stores open at least a year fell 1.2 percent, pulled down by a 4.5 percent drop-off at Sears. Same-store sales rose 2.5 percent for Kmart.
For the year, Sears earned $133 million, or $1.19 per share — off 43 percent from $235 million, or $1.99 per share, in the prior year. Adjusted earnings fell to $2.07 per share from $3.19 per share.
Annual revenue declined 2 percent to $43.33 billion from $44.04 billion. Same-store revenue fell 1.6 percent, with Kmart posting a 0.7 percent increase and Sears reporting a 3.6 percent decline.
Sears also named technology industry executive Lou D’Ambrosio as its new CEO, ending a three-year search that began after its last CEO, W. Bruce Johnson, resigned amid sales and profit slumps.
–Compiled by Wendy Geister
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